International Campus launches a fund

International Campus launches a fund for student housing,
capitalizing on its existing platform and deep pipeline

• Luxem­bourg vehicle will build up a portfolio of up to €800 million invest­ment volume
• First closing of €50 million equity realized
• In total an amount of €250 million Euro equity will be collected
• Eight “THE FIZZ” residen­tial buildings for students with more than 2,400

  apart­ments are being realized in seven cities

Aiming to further develop its platform for student
accom­mo­da­tion, Inter­na­tional Campus AG, the Munich specia­list for develo­ping and
opera­ting modern student residences, has incor­po­rated in Luxem­bourg Inter­na­tional
Campus Student Housing I S.C.A. (the “Fund”) for profes­sional inves­tors. The purpose
and objec­tive of the Fund is the creation of a larger portfolio of residen­tial buildings

for students, prima­rily in Germany. These will be developed by
Inter­na­tional Campus AG and predo­mi­nantly operated with uniform quality
standards under the brand “THE FIZZ”.

“We have raised €50 million of equity in a first closing and there­with enter directly
into the invest­ment stage. Talks with a number of further equity inves­tors are
currently underway”, explains Horst Lieder, CEO of Inter­na­tional Campus AG. All-in-
all, Inter­na­tional Campus AG plans to raise up to €250 million in Fund commit­ments.

“We plan to raise at least up to €250 million equity. This would allow us to build a
portfolio with a total invest­ment volume of up to €800 million. Finan­cing condi­tions
in Germany are currently very favourable in compa­rison with other count­ries both in
terms of interest rates and access to credit. Inter­na­tional Campus AG will also invest
in the portfolio by commit­ting 5% to 6% of the capital of the Fund. This ensures full

alignment of interests between inves­tors and Inter­na­tional Campus as the developer,
operator and ultim­ately a fellow investor”, conti­nues Lieder.

It is planned to develop proper­ties within the Fund over the next 3–5 years and exit
within 5 to 7 years. Attrac­tive risk-adjusted returns with a target yield (IRR) of 14 %
on the equity are expected. “The strategy of creating a platform of this nature for a
large-volume portfolio in the area of student housing provides an attrac­tive product
for insti­tu­tional inves­tors that is unlike anything currently available in Germany for
this segment. This is another step forward in provi­ding access for inves­tors to student
housing in Germany as a standa­lone asset”, adds Rolf Engel, chairman of the board of
Inter­na­tional Campus AG.

Seven projects in six TOP cities secured for International Campus AG’s Luxembourg
Fund

The ongoing project develo­p­ments of Inter­na­tional Campus AG and invest­ments
made in this context are all earmarked for the Luxem­bourg Fund. This includes:

• Bremen: Inter­na­tional Campus AG has acquired “THE FIZZ Bremen” with 336 student apart­ments, a building that Inter­na­tional Campus AG developed and operates. The FIZZ Bremen was completed in 2012 and is fully let.
• Berlin: Jointly with the Berlin family business Gädeke & Sons, Inter­na­tional
  Campus AG is develo­ping “THE FIZZ Berlin” with 212 apart­ments;
  construc­tion has already started. The first students will move in in the winter
  semester of 2014.
• Frank­furt: A converted office building, “THE FIZZ Frank­furt” in the
  Gallus­viertel district will provide 382 student apart­ments offering the same
  quality as a new building. The start of construc­tion is imminent and opening
  is scheduled for October 2014.
• Frank­furt: Close to the Sommer­hoff­park, “THE FIZZ Frank­furt II”, with ca.
  390 apart­ments, is being developed by Inter­na­tional Campus AG jointly with
  the Berlin family business Gädeke & Sons and OFB Projekt­ent­wick­lung GmbH
  as total contractor. Opening is scheduled for October 2015. Inter­na­tional
  Campus AG is currently coordi­na­ting with the city of Frank­furt as part of the
  planning process.
• Darmstadt: A preli­mi­nary building permit has been issued for this property,
  which was recently acquired by Inter­na­tional Campus AG. “THE FIZZ
  Darmstadt” will provide ca. 350 apart­ments and is expected to be ready for
  occup­ancy by October 2015.
• Hanover: In Hanover, Inter­na­tional Campus AG has taken over a project at an
  advanced stage of develo­p­ment. “THE FIZZ Hannover” will provide 302
  apart­ments. Construc­tion is slated to start shortly and the building is
  scheduled to open in summer semester 2015.
• Hamburg: In Hamburg, Inter­na­tional Campus AG is develo­ping
  “THEFIZZ­Ham­burg” jointly with the Hanseatic Group as part of a larger
  overall develo­p­ment. The building with ca. 292 apart­ments will be ready for
  occup­ancy for the winter semester of 2015.

Besides these Fund projects, Inter­na­tional Campus AG expects to operate an eighth
residen­tial building for students that has been built by the GbR GEWO Stuckert
Wohnbau AG in Freiburg; the indivi­dual apart­ments are expected to be sold to private inves­tors in part owner­ship. The building work for “THE FIZZ+ Freiburg” with 149 apart­ments in two construc­tion stages is already quite advanced. The topping-
out ceremony for the first construc­tion stage will take place on 17 October 2013. The
first students can then move in by the summer semester of 2014.

Once these eight student residences are opened, Inter­na­tional Campus AG will be
opera­ting more than 2,400 apart­ments in seven cities.

In addition to this, Inter­na­tional Campus AG is also revie­wing the feasi­bi­lity of other
projects for expan­ding the portfolio from its existing pipeline of locations in large
univer­sity cities in western Germany. “This ensures that we can make efficient and
sustainable use of the currently highly favourable time window for this kind of
invest­ment”, says Lieder.